Crawl Inc.has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2021.The board of directors declared and paid a $2,000 dividend in 2020.In 2021, $10,000 of dividends are declared and paid.What are the dividends received by the common stockholders in 2021?

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The preferred stockholders are entitled to a $3,000 dividend ($1,000 shares x $6% x $50 par value). The remaining $7,000 is available to the common stockholders.

Crawl IncHas 1,000 Shares of 6%, $50 Par Value, Cumulative Preferred